The Academic Staff Union of Universities (ASUU) has warned that the federal government?s proposal to phase out the Tertiary Education Trust Fund (TETFund) by 2030 will destroy public tertiary institutions and education in the country.

The union argues that such a move would not only negate the efforts invested in establishing TETFund but would also make tertiary education unaffordable for the poor. The statement was made by ASUU National President, Prof. Emmanuel Osodeke, in response to provisions within the Nigeria Tax Reform Bill 2024, currently before the National Assembly. 0:00

The bill includes several key pieces of legislation: The Nigeria Tax Bill 2024 (NTB), the Nigeria Tax Administration Bill 2024 (NTAB), the Nigeria Revenue Service Establishment Bill 2024, and the Joint Revenue Board Establishment Bill 2024, which are designed to consolidate various tax frameworks.

A key issue is Section 59 (3) of the NTB 2024, which details how the Development Levy, an education tax that currently funds TETFund, will be distributed starting in 2025. According to the proposed bill, TETFund would receive 50% of the Development Levy in 2025 and 2026, with NITDA, NASENI, and NELFUND receiving the remaining percentages. However, by 2030, NELFUND is set to receive 100% of the levy, while TETFund, NASENI, and NITDA will receive nothing.

Osodeke expressed concern that if TETFund loses its share of the levy, the government effectively intends to shut down the fund. ?With all the Development Levy going to the Student Loan Scheme or NELFUND, public tertiary institutions will be forced to increase tuition fees, which will become exorbitant. Phasing out TETFund will threaten tertiary education in Nigeria, rendering all the efforts to establish the Education Tax Fund, which later became TETFund, futile,? he said.

He further emphasized that TETFund has been crucial in supporting public universities, noting that without the fund, many institutions would have collapsed due to a lack of basic facilities. ?If you visit public tertiary institutions, you?ll see that anything new or decent on campus has been provided by TETFund,? Osodeke pointed out.

He appealed to the federal government to reconsider its plan, warning that its implementation would effectively destroy public tertiary education in the country. (Vanguard)

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